Question

find the amount ant the compound interest on rupees 50000 for 1 whole 1/2 years at 8% per annum,the interest being compounded semi-annually.

Answer 1

Answer:

It is given that

Principal (P) = 50000

Rate of interest (r) = 8% p.a. = 4% semi-annually

Period (n)= 1

2

1

years = 3 semi-annually

We know that

Amount = P(1+r/100)

n

Substituting the values

= 50000(1+4/100)

3

By further calculation

= 50000(26/25)

3

= 50000×26/25×26/25×26/25

= 56243.20

Here

Compound interest = A - P

Substituting the values

= 56243.20−50000

= 6243.20

Answer 2

Answer:

It is given that

Principal (P) = 50000

Rate of interest (r) = 8% p.a. = 4% semi-annually

Period (n)= 1

2

1

years = 3 semi-annually

We know that

Amount = P(1+r/100)

n

Substituting the values

= 50000(1+4/100)

3

By further calculation

= 50000(26/25)

3

= 50000×26/25×26/25×26/25

= 56243.20

Here

Compound interest = A - P

Substituting the values

= 56243.20−50000

= 6243.20